DISASTER AND EMERGENCY FUND CAP S.B. 1047:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 1047 (as reported without amendment)
Sponsor: Senator Sean McCann
Committee: Appropriations
CONTENT
The bill would amend the Emergency Management Act, which created the Disaster and
Emergency Contingency Fund (DECF), by removing a requirement that the balance of the
DECF not exceed $10.0 million. The bill would retain a requirement that the DECF balance not
fall below $2.5 million.
MCL 30.418
FISCAL IMPACT
The bill would have relatively little impact on the Department of State Police, which
administers the DECF. The DECF is used to provide state assistance to counties and
municipalities for disaster or emergency assistance related to public damage when a
declaration of a state of disaster or a state of emergency is declared by the Governor. The
fund is also used to provide required matching funds required when federal support becomes
available in the event that a Presidential declaration of major disaster is made. The bill could
give the DECF more fiscal flexibility in meeting its objectives. Amounts in the Fund depend
upon legislative appropriations and do not lapse to the General Fund at the end of a fiscal
year. The demand for these matching funds has increased in recent years and, if not for a
fiscal year (FY) 2023-24 supplemental appropriations of $10.0 million General Fund/General
Purpose (GF/GP) to the DECF under Public Act 121 of 2024, the Fund balance would have
been insufficient to meet disaster contribution requirements for FY 2023-24. Within that same
appropriation act, $10.0 million GF/GP was appropriated to the DECF for FY 2024-25. The
Department reports that the current DECF fund balance is $14.9 million, and has estimated that
with current anticipated FY 2024-25 expenditures, the fund balance will be at $3.1 million at
the end of the fiscal year.
Date Completed: 12-4-24 Fiscal Analyst: Bruce R. Baker
SAS\Floors2324\sb1047
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official
statement of legislative intent.
Page 1 of 1 Bill Analysis @ www.senate.michigan.gov/sfa sb1047/2324


Statutes affected:
Senate Introduced Bill: 30.418
As Passed by the Senate: 30.418